Frequently Asked Questions

I’m not sure I need a loan. Who can help me decide what’s best for my business?

The Northcoast Small Business Development Center (SBDC) provides free assistance to small business owners and entrepreneurs.  We strongly encourage all applicants to use SBDC programs before, during and after the loan process.  Click here for more information on the SBDC.


My credit is not very good. Can I get a loan from RREDC?

We do look at your credit history when making a decision on whether or not to make a you a loan.  However, we will take into consideration special circumstances that may have led to your past credit issues.  In these cases, we will ask you to provide us with a written explanation on why you had a credit issue.


Do you require collateral?

Yes.  Federal regulations require that we have collateral for our loans.  However, if your business has strong cash flow or other strengths, we can exceed 100% loan to value.


What are your terms?

Because we take more risk than a traditional lender, our interest rates are somewhat higher, ranging from 7% to 10% per year.  We may be able to reduce your payment by lengthening the amount of time you have to pay back your loan.


How is a RREDC loan different from a bank loan?

We only provide loans to businesses that cannot get all of their financing needs met through a traditional lender.  This includes businesses that have been turned down by a bank or credit union.  Otherwise, our loans are very similar to those offered by private lending institutions.


I need help with my business plan. Who can help me?

The Northcoast Small Business Center is a great source for business plan help.  They provide workshops, have a library with sample plans, and can offer one-on-one assistance.  Visit their website at www. northcoastsbdc. org.